The way governments have reported their fiduciary activities has varied at times and sometimes, they are not reported at all. GASB Statement 84 aims to correct this as well as other items effecting the fiduciary accounting world. Now is the time for an evaluation of all your activities to determine whether this GASB statement will affect your government in a way that will cause them to be fiduciary activities in the future.
Don’t worry, you still have time. This GASB Statement will impact your December 31, 2019, or June 30, 2020, financial statements. If you’re wondering “what is the quickest way I can evaluate my fiduciary activities,” you’re in luck. Like most GASB Statements, the Board has provided a quick flowchart tool you can use to help determine how this will impact you. Simply head to the GASB website and navigate to GASB Statement 84. Once you have downloaded the statement, scroll down to Appendix C, where you will find a few flowcharts.
Start by evaluating these flowcharts. As you move along the charts, you may question whether something applies to you, in which case, each flowchart directs you to the paragraph in the standard you can read to better interpret if it applies to your government. Once you have determined you have a fiduciary activity, look at Appendix D for an illustration of how your fiduciary fund statement will change.
Although this statement may appear cumbersome at first, the tools provided in the appendix will prove to be resourceful in applying it when the time comes.
Brian Hemmerle, CPA, CFE